Debt Management Plan Reviews
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you thinking about starting a Debt Management Plan (DMP) and want to make sure you make the best choice? You’re at the right place.
Every month, over 170,000 people visit our website looking for guidance on debt solutions. You’re not alone.
In this easy-to-read guide, we’ll share:
- What a Debt Management Plan (DMP) is and how it works
- Steps to take if you’re feeling worried about debt
- The importance of a DMP review and how to prepare for it
- Ways to possibly write off some of your debt
- Answers to common questions about debt management
Managing debt can feel hard; some of us have been in your shoes. But don’t worry; we’re here to help you understand your options.
What is a DMP Review?
A DMP is a formal assessment of the terms and conditions of your debt solution, normally done by your DMP practitioner and the company they are associated with.
A DMP review assesses a variety of different factors that go into your DMP. To put it simply, they’re done to ascertain that your plan is fair towards you, that you’re not facing excessive difficulty in making regular repayments, and so on.
Under normal circumstances, DMP assessments are done at least once a year, but this can vary depending on your situation. For instance, your company may ask for a DMP review when your circumstances change.
Alternatively, it could be you requesting a DMP assessment if a significant change in your conditions means that you’ll require a formal change in the terms of your DMP. If that change is implemented, it will, of course, be communicated to your creditors.
If you need help, Stepchange Debt is a great initiative you can look to. The folks at Stepchange Debt will help you learn more about your situation.
» TAKE ACTION NOW: Fill out the short debt form
Why is a DMP Review Important?
A DMP is very important for a variety of reasons.
Since your debt managers are trying to help you pay your debt back as quickly as possible, they may want to check on how good your current debt solution is for you.
If they find certain hindrances and irregularities, they could suggest changes to the plan to make sure that you’re able to pay your debts back sooner than before.
Our circumstances can change often and with great ambiguity. Sometimes, your DMP may be affected by those changes. A DMP review can help your DMP practitioner and your creditors know what’s going on and try to fix it.
Your DMP review will address whether the monthly payment you make is set at the right threshold. If you’re underpaying and can easily afford to pay a larger sum in payments each month, your DMP review can identify that.
On the other hand, if you’re paying too much, and if certain unexpected expenditures have disrupted your ability to pay as much as you’re paying, your DMP review can fix that as well.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
Monthly income | £2,504 |
Monthly expenses | £2,345 |
Total debt | £32,049 |
Monthly debt repayments
Before | £587 |
After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
How Do You Prepare for a DMP Review?
There are certain things you need to do and documents you need to provide when you’re gearing up for your DMP review.
I’ve listed these requirements below. Let’s get right to discussing them.
- Displaying proof of your income
Certain DMP management companies ask you to send proof of your current income before a formal review commences.
If you’re asked to do so, you can send them a copy of your most recent bank statement. It will have your income listed on it.
- Know the details of your income
Throughout the review process, you will be asked several details about your DMP and your income.
Make sure you’ve done your homework and that you know how often you’re paid, the amount, if it varies, and other logistical details.
It’s best to have these details at your fingertips, since you may be asked for them frequently.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
Natasha
I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
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FAQs
Wrapping it Up
A DMP review can be one of the most crucial phases of your entire DMP experience.
You need to know what you’ll need to properly address your DMP review and make the most of it. A DMP review can make your DMP arrangement significantly easier for you if done right.
I hope this guide helped you more about what a DMP review is and how it can help you. If you need more assistance managing debts or debt advice, feel free to reach out.